MBS MID-DAY: More New All-Time Highs. Backing Off A Bit Now
By:
Matthew Graham
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MBS Live: MBS Morning Market Summary
Bond markets rolled into the morning already in slightly better territory after an overnight session of headlines and events that were generally supportive of "risk-off" trading. Stocks, bonds, German Bunds, and The Euro were all more connected than they've been recently--something that typically connotes "risk-on vs risk-off" trading amid a lack of major trading motivations. In that sense, we could just as easily disregard the overnight headlines and say that markets continued recent trends with bond markets stronger and stocks weaker. Whatever the case, MBS opened in line with yesterday's all-time highs and moved even higher into the 11am hour. Things have backed off a bit since then with Fannie 3.0s down to 105-31 from today's new all-time highs of 106-03. Next noteworthy event is the 5yr Treasury Auction at 1pm.
MBS Pricing Snapshot
Pricing shown below is delayed, please note the timestamp at the bottom. Real time pricing is available via MBS Live.
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Morning Reprice Alerts and Updates
Below is a recap of instant Reprice Alerts and updates issued via email and text alert to MBS Live subscribers this morning.
10:05AM :
ECON: New Home Sales Fell (Or Climbed?) In August
- Home Sales At 373k vs 370k consensus
- Rate of change is -0.3 pct, but with a ±9.3 pct margin of error
Sales of new single-family houses in August 2012 were at a seasonally adjusted annual rate of 373,000, according to estimates released jointly today by the U.S. Census Bureau and the Department of Housing and Urban Development. This is 0.3 percent (±9.3%)* below the revised July rate of 374,000, but is 27.7 percent (±18.8%) above the August 2011 estimate of 292,000.
The median sales price of new houses sold in August 2012 was $256,900; the average sales price was $295,300. The seasonally adjusted estimate of new houses for sale at the end of August was 141,000. This represents a supply of 4.5 months at the current sales rate.
- Rate of change is -0.3 pct, but with a ±9.3 pct margin of error
Sales of new single-family houses in August 2012 were at a seasonally adjusted annual rate of 373,000, according to estimates released jointly today by the U.S. Census Bureau and the Department of Housing and Urban Development. This is 0.3 percent (±9.3%)* below the revised July rate of 374,000, but is 27.7 percent (±18.8%) above the August 2011 estimate of 292,000.
The median sales price of new houses sold in August 2012 was $256,900; the average sales price was $295,300. The seasonally adjusted estimate of new houses for sale at the end of August was 141,000. This represents a supply of 4.5 months at the current sales rate.
9:26AM :
ALERT ISSUED:
Bond Markets Steady At Stronger Levels Ahead Of Rate Sheets
As we approach rate sheet creation time, MBS are 7 ticks higher into new all-time highs for the 6th time in two weeks. Fannie 3.0s are ONE TICK AWAY FROM 106-00! Bond markets traded lower in yield overnight on a slew of generally bond-bullish headlines. News includes:
The first scheduled data on tap is New Home Sales at 10am, followed by the 5yr Treasury Auction at 1pm.
- Financial Times: Eurozone bailout deal in doubt
- Spanish province Catalonia may secede as Spain moves closer to requesting bailout. Greece-style violent protests.
- Speaking of Greece protesting, there was also an anti-austerity strike in Greece as the country continues trying to tighten its fiscal belt in order to meet Troika requirements
- 3 year low in Chinese stocks, helped bond markets hold ground during Asian session.
- Bank of Spain notes a sharp drop in Q3 GDP
- Bundesbank's Weidmann "not alone" in concerns over ECB bond buying
The first scheduled data on tap is New Home Sales at 10am, followed by the 5yr Treasury Auction at 1pm.
Live Chat Featured Comments
A recap of the featured comments from the MBS Live Dashboard's Live Chat feature, utilized by hundreds of industry professionals each day.
Matthew Graham : "RTRS- US AUG MEDIAN SALE PRICE HIGHEST SINCE MARCH 2007 ($262,600) "
Matthew Graham : "RTRS- US AUG MEDIAN SALE PRICE $256,900, +17.0 PCT FROM AUG 2011 ($219,600) "
Matthew Graham : "RTRS - US AUG HOME SALES NORTHEAST +20.0 PCT, MIDWEST +1.8 PCT, SOUTH -4.9 PCT, WEST +0.9 PCT "
Matthew Graham : "RTRS- US AUG SINGLE-FAMILY HOME SALES -0.3 PCT VS JULY +3.6 PCT (PREV +3.6 PCT) "
Matthew Graham : "RTRS- US AUG SINGLE-FAMILY HOME SALES 373,000 UNIT ANN. RATE (CONS 380,000) VS JULY 374,000 (PREV 372,000) "
Matthew Graham : "Too bad that "enigma" is keeping these mortgage rates so damn high. Greedy lenders and their 2+ points of rebate at 3.25%.... "
Grant R. Menard : "holy smokes.... love it."
Brent Borcherding : "No rest for the weary."
Victor Burek : "wow"
Jeff Anderson : "106"
Matthew Graham : "RTRS - IMF WANTS EU TO TAKE HAIRCUT ON PUBLIC SECTOR GREEK BOND HOLDINGS - SOURCES "
Jeff Anderson : "I'm thinking the lenders will have to step on the brakes for at least a little while in the next week or so to attempt to stay afloat. "
Matt Hodges : "depends on clogged pipes and willingness to portfolio deals...for some period of time"
Ken Crute : "I'll answer that question for you MG in about 30 min "
Matthew Graham : "I'm wondering how much lower anyone can be "forced to reprice" given the standard basket of barriers that prevent rates from falling too much too quickly. "
Grant R. Menard : "agreed. "
Matt Hodges : "many didn't RP yesterday and will be forced to do so today, mg"
Victor Burek : "i dont think so Brent..i think they push it to see if Germany will blink and give no conditions"
Brent Borcherding : "Spain bellying up to the bailout window this week?"
John McClellan : "come on 106 on the 3"
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